UNEXPECTEDLY: Best-Run States Are Low-Tax Republican, Worst-Run Are High-Tax Democratic, Study Finds.
There were several changes in the rankings from last year. Florida moved from sixth place to first, while Alaska dropped from first place last year to 17th this year, driven mainly by the fall in oil prices. Idaho moved into the top 10.
At the bottom of the heap, Louisiana and West Virginia both dropped down in the 10-worst list, while Hawaii greatly improved, going from 45th place last year 27th this year. Connecticut, Maine and New York also climbed out of the bottom 10 list. But New Jersey fell to dead last from last year’s 48th place.
The report also includes rankings for each individual measure of fiscal solvency, in addition to the overall ranking. Some states do well on some measures, and bad on others. New Jersey, for example, is last on long-run solvency and second to last on budget solvency, but ranks 24 on service-level solvency.
Nearly bankrupt Illinois is in the bottom in all but one of the five individual measures — service-level solvency.
The Mercatus report doesn’t include data on the states’ political leanings or tax burdens, but the implication is clear.
Great study — don’t get cocky.